RESTRICTED WT/TPR/S/310 19 January 2015 (15-0296) Page
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RESTRICTED WT/TPR/S/310 19 January 2015 (15-0296) Page: 1/129 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT JAPAN This report, prepared for the twelfth Trade Policy Review of Japan, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Japan on its trade policies and practices. Any technical questions arising from this report may be addressed to Ricardo Barba Viniegra (tel.: 022 739 5088) and John Finn (tel.: 022 739 5081). Document WT/TPR/G/310 contains the policy statement submitted by Japan. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Japan. This report was drafted in English. WT/TPR/S/310 • Japan - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 11 1.1 Recent Economic Developments.................................................................................. 11 1.2 Trade Performance and FDI ........................................................................................ 14 1.2.1 Trade in goods and services .................................................................................... 14 1.2.2 Foreign direct investment........................................................................................ 16 1.3 Outlook ................................................................................................................... 17 2 TRADE AND INVESTMENT REGIME ............................................................................ 19 2.1 General Framework .................................................................................................. 19 2.2 Trade Policy Objectives ............................................................................................. 21 2.3 Trade Agreements and Arrangements .......................................................................... 21 2.3.1 WTO .................................................................................................................... 21 2.3.2 Regional and preferential agreements ....................................................................... 21 2.3.3 Other agreements and arrangements ........................................................................ 22 2.4 Investment Regime .................................................................................................. 23 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 26 3.1 Measures Directly Affecting Imports ............................................................................ 26 3.1.1 Customs procedures and requirements ..................................................................... 26 3.1.2 Customs valuation ................................................................................................. 26 3.1.3 Rules of origin ....................................................................................................... 27 3.1.4 Tariffs .................................................................................................................. 27 3.1.4.1 MFN applied tariff ................................................................................................ 27 3.1.4.2 Bound tariff ........................................................................................................ 31 3.1.4.3 Preferential tariff ................................................................................................. 31 3.1.5 Import prohibitions, restrictions, licensing, and quotas ................................................ 32 3.1.6 Contingency trade measures ................................................................................... 33 3.1.7 Standards and other technical requirements .............................................................. 33 3.1.8 Sanitary and phytosanitary measures ....................................................................... 38 3.1.9 Labelling and packaging requirements ...................................................................... 40 3.1.10 Government procurement ..................................................................................... 41 3.2 Measures Directly Affecting Exports ............................................................................. 43 3.2.1 Export procedures and requirements ........................................................................ 43 3.2.2 Export taxes, charges, and levies ............................................................................. 44 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 44 3.2.4 Export support and promotion ................................................................................. 46 3.3 Measures Affecting Production and Trade ..................................................................... 47 3.3.1 Taxes ................................................................................................................... 47 3.3.1.1 Income tax ........................................................................................................ 48 3.3.1.2 Corporation tax ................................................................................................... 49 WT/TPR/S/310 • Japan - 3 - 3.3.1.3 Corporation tax-based incentives ........................................................................... 49 3.3.1.4 Consumption tax ................................................................................................. 50 3.3.1.5 Local taxes ......................................................................................................... 50 3.3.1.6 Excise duties ...................................................................................................... 51 3.3.1.7 Tax treaties ........................................................................................................ 52 3.3.2 Subsidies and support ............................................................................................ 52 3.3.3 State-owned enterprises ......................................................................................... 53 3.3.4 Competition policy ................................................................................................. 56 3.3.4.1 Recent developments .......................................................................................... 56 3.3.4.2 Exemptions from prohibition of cartels ................................................................... 56 3.3.4.3 Holding companies, and mergers and acquisitions .................................................... 57 3.3.4.4 International arrangements .................................................................................. 57 3.3.4.5 Enforcement ....................................................................................................... 57 3.3.5 Intellectual property rights (IPRs) ............................................................................ 58 3.3.5.1 Overview ........................................................................................................... 58 3.3.5.2 Patents .............................................................................................................. 60 3.3.5.3 Utility models (UMs) ............................................................................................ 63 3.3.5.4 Designs ............................................................................................................. 63 3.3.5.5 Trademarks ........................................................................................................ 64 3.3.5.6 Geographical indications (GIs) .............................................................................. 65 3.3.5.7 Copyright ........................................................................................................... 65 3.3.5.8 Enforcement ....................................................................................................... 65 4 TRADE POLICIES IN SELECTED SECTORS .................................................................. 68 4.1 Agriculture .............................................................................................................. 68 4.1.1 Trade ................................................................................................................... 70 4.1.2 Agricultural policies ................................................................................................ 71 4.1.2.1 Legal and institutional framework .......................................................................... 71 4.1.2.2 Trade policies ..................................................................................................... 73 4.1.2.3 Domestic support ................................................................................................ 74 4.1.2.3.1 General support programmes ............................................................................. 74 4.1.2.3.2 Rice ............................................................................................................... 75